Boutique Webster Square Route 139 Marshfield, MA

Ze@l Boutique Webster Square Route 139 Marshfield, MA 02050 781 507 3480 Business Proposal for Jacqueline Doherty

Financial Proposal for Ze@l Boutique To be Submitted to Citizens Bank Jacqueline Doherty Ze@l Boutique Webster Square Route 139 Marshfield, MA 02050 781 507 3480 September 1, 2021

Section One: The Business Statement of Purpose Zeal Boutique seeks a loan totaling $66,315 to purchase equipment and inventory; lease property and buildings at Webster Square Route 139, Marshfield, Massachusetts; perform necessary renovations and improvements; and maintain sufficient cash reserves to provide adequate working capital to successfully start a retail clothing boutique. This sum, together with an additional 20,000 by the principal, will finance the start up phase so that the business can operate at a high level of profitability. Table of Contents Page Section One: The Business 3 A. Description of Business 4 B. Description of Market 4 C. Description of the Location 4 D. Description of the Competition 5 E. Description of Management 5 F. Description of Personnel 6 G. Application and Expected Effect of Loan 6 H. Summary 6 Section Two: Financial Data 7 A. Description of Sources and Applications of Funding 7 B. Capital Equipment List 7 C. Balance Sheet 8 D. Breakeven Analysis 9 E. Income Projections 10 F. Cash Flow Projections 11 Section Three: Supporting Documents 11 A. Resumes 12 B. Contractor s Letter 13 C. Letter of Recommendation 14 D. Business Layout 15

Description of Business Zeal Boutique will be a clothing and accessories boutique specializing in selling trendy and stylish clothes to women ages 16 to 30. Zeal plans to concentrate more heavily on premium and new luxury brands for young women. Although margins are lower in clothing shops, profits will be higher due to lack of boutiques in the area. Zeal Boutique plans to begin business September 1, 2021. The store will be open Monday through Saturday from 10:00 a.m. to 5:00 p.m. In addition, Zeal will have a website that will be up 24/7. The demand is year-round and will sell clothing corresponding to the current season and weather. The demand is currently increasing because there is a lack of clothing and accessory shops in the town of Marshfield. Since Zeal will be the only clothing boutique in the area, the demand will be high and the customers will demand the clothing options. The quality of the clothes will be great and will serve a trading up phenomenon to our premium brands. Since as the owner have an outstanding background in the fashion and shopping business, have a well awareness of the customer base, Zeal does not anticipate trouble maintaining good relations with shoppers. Zeal has made a policy of paying premium prices for the best, most stylish brands of clothing. Description of the Market Zeal Boutique will provide premium-quality clothes and accessories to customers. Zeal plans to increase the demand and supply for the brands we will service in the area. The business should grow over the next few years. Zeal s goal is to provide the most stylish and popular brands at competitive prices to customers in the town of Marshfield and possibly the towns surrounding. Marshfield has a total population of 24,828 people, 51.2% being women, our target customers. Customers will be attracted by the following: A local radio and newspaper advertising campaign Word-of-mouth advertising from our families, friends and future customers Our location in the center of town on Route 139, near other stores and restaurants Website that customers can order clothing from anywhere Description of the Location Zeal Boutique plans to lease a two-story building with a cement floor (1,000 square feet) at 12 Snow Road on Route 139, Marshfield, Massachusetts, for $1000/ month. The area is zoned for commercial use. Snow Road is part of U.S. Route 139, a heavily traveled route with most nearby businesses catering to current town citizens. A large parking lot used for the surrounding stores will give enough parking for the stores customers. Zeal Boutique will perform leasehold improvements. The building will be divided into (1) a sales counter area (2) a dressing room (3) a showroom area complete with shelves and glass containers for the clothes (4) a multipurpose area for

employees, complete with bathroom and separate entry and storage space. See the diagram in Supporting Documents. Description of the Competition There are three clothing stores competing directly with Zeal Boutique: 1. Marshalls. A department, brand-names for less store serves to all age groups and types of people. As a large-chain store, this will be Zeal s biggest competitor. However, because Zeal will offer more premium brands customers will chose Zeal over Marshalls everyday clothing. 2. Pre-Game Sports. As a sports clothing store, Zeal will have little competition competing with this average lower-priced sports store. 3. Olivia Rose Boutique. As a boutique similar to Zeal, there will be no competition since Olivia Rose services to children and infant clothing and accessories. Description of Management Jacqueline Doherty was born in Arlington, Massachusetts, on December 24, 1989. Since birth she and her family have lived on the south shore in Marshfield, Massachusetts during the summer. After graduating from Arlington Catholic High School, she moved on to get a degree in Business from Roger Williams University in Rhode Island. After graduating, Jackie accepted a job at a fashion magazine in Boston and started renting an apartment in the South End. Jackie worked hard at her job to save enough money to someday reach her goal of owning a clothing boutique. By setting aside money for her store, she was certain she would one day accomplish her goal. When she was 24, she married and moved to the Humarock section of Marshfield, only two streets over from her summer home. As her husband provided the larger part of their income, Jackie continued to commute to Boston. At age 27, Jackie and her husband decided they wanted to start a family and in the next three years they had two beautiful children. Since the commute was long and motherhood took up the bulk of her time, Jackie quit her job at the fashion magazine. Still, her family lived comfortably with her husband s salary. When her children began pre-school, Jackie decided it would be a good time to start her business. With the money saved and help from her husband and father, she is finally ready to live out her dream. As an energetic and exciting person, Jackie hopes that her personality will help her to be successful in her business. With a business degree and work experience in the fashion world, Jackie knows how to organize and run her business. With the help of her sister who just recently graduated from college and best friend who graduated college with a fashion degree and is now creating her own clothing line, Jackie is sure that this boutique will be loved by all. Jackie s starting salary will be $1,500/ month for the first year to enable the business to pay start-up costs. Jackie s husband earns enough money to support their family. In the second year her salary will increase to $2,000/month. Once profits increases and start-up costs are paid off, she will be paid more.

In order to augment her skills, Jackie has enlisted the help of Boston Financial, Driscoll and Gibson (attorneys) and Coldwell Banker s who will be on the advisory board. This board will provide ongoing management review. Description of Personnel Zeal Boutique will hire one high school part-time employee who will work Monday through Thursday from three to five. This sales person will be paid ten dollars an hour. Jackie s sister will work part-time as well, on Fridays and Saturdays from ten to five. She will also be paid ten dollars an hour. Jackie s friend Alisanne, who designs her own clothes that will be sold through Zeal Boutique and Jackie, will work the rest of the hours during the week; Monday through Friday ten to three. Alisanne will be paid $1,500/ month as well. No benefits will be given to the part-time workers. Application and Expected Effect of Loan or Investing The $66,315 will be used as follows: Renovations to property $20,000 Equipment 6,315 Working Capital 20,000 Cash reserve 20,000 Total $66,315 Summary Zeal Boutique will be a clothing boutique serving retail in the center of Marshfield, MA. Jackie Doherty, the owner, is seeking loans totaling $66,315, to lease and improve the property in Webster Square on Route 139, purchase equipment, maintain a cash reserve, and provide adequate working capital. This amount will be sufficient to finance transition through a planned expansion phase so the business can operate as an ongoing, profitable venture. Careful analysis of the potential market shows an unfulfilled demand for trendy and stylish clothes. Jackie s local reputation will help secure a sizable portion of the customers. Jackie s business degree from Roger Williams University will provide a good background to the business and management.

Section Two: Financial Data Description of Sources and Applications of Funding Zeal Boutique Sources: Term loan $36,315 Reserve 20,000 Investment 10,000 Total Sources $66,315 Applications: Renovations $20,000 Equipment 6,315 Working capital 20,000 Reserve 20,000 Total $66,315 To be secured by the assets of business and personal guarantee of the principal, Jackie Doherty. Capital Equipment List Zeal Boutique Major Equipment and Normal Accessories Model Cost or List Price (whichever is lower) Mac 20 inch 2.4 GHz Intel $1,578 core 2 Duo (2) Cannon Pixma office all in MP530 179.95 one printer Computer Desk 169 File Cabinet 110 Office Chair 100 Mannequin (4) 800 Racks/Shelves 1000 Mirrors 500 Total Capital Equipment $6,315

Zeal Boutique Balance Sheet September 1, 2021 Current Assets Cash $25,000 Merchandise Inventory 25,000 Total Current Assets 50,000 Fixed Assets Equipment 6,315 Renovations 20,000 Total Fixed Assets 26,315 Current Liabilities Total Current Liabilities Long-Term Liabilities Bank Loan 66,315 Total Long-Term Liabilities 66,315 Total Liabilities 66,315 Net Worth Owners Equity 10,000 Total Assets $76,315 Total Liabilities & Net Worth $76,315

Zeal Boutique Breakeven Analysis Projected figures from Zeal s One-Year Income Projection Fixed Costs FC = $ 8,200/month Gross Margin GM = $ 35,280- $24,696/$35,280 = 30% Thus, Breakeven Analysis =S = FC/GM = $8,200/.3 On a monthly basis, S = $27,333 30,000 D o l l a r S a l e s 25,000 20,000 15,000 10,000 5,000 0 Monthly sales Fixed Costs B/E Month Months

Zeal Boutique Income Projection: One-Year Summary Total Month One Total Quarter Total Year One One Sales $35,280 $105,840 $423,360 Cost of Goods Sold 24,696 74,088 296,352 Gross Margin $10,584 $31,752 $127,008 Operating Expenses Utilities $300 $900 $3,600 Salaries 3,880 11,640 46,560 Advertising 1,000 3,000 12,000 Office Supplies 300 900 3,600 Insurance 350 1,050 4,200 Maintenance & Cleaning 200 600 2,400 Legal & Accounting 350 1,050 4,200 Licenses 25 75 300 Telephone 35 105 420 Miscellaneous 200 600 2,400 Lease 1,000 3,000 12,000 Total Operating Expenses $8,192 $24,576 $98,304 Other Expenses Bank Loan Interest $552 $1,656 $6,624 Total Other Expenses Total Expenses $8,744 $26,232 $104,928 Net Profit (Loss) $1,840 $5,520 $22,080

Zeal Boutique Cash Flow Projection Total Month Total Quarter Total Year One One One Cash Receipts $35,280 $105,840 $423,360 Cash Disbursements Cost of Goods Sold $24,696 $74,088 $296,352 Utilities 300 900 3,600 Salaries 3,880 11,640 46,560 Advertising 1,000 3,000 12,000 Office Supplies 300 900 3,600 Insurance 350 1,050 4,200 Maintenance/Cleaning 200 600 2,400 Legal/Accounting 350 1,050 4,200 Licenses 25 75 300 Telephone 35 105 420 Miscellaneous 200 600 2,400 Lease 1,000 3,000 12,000 Bank Loan 920 2,760 11,040 Total Cash Disbursements $33,256 $99,768 $399,072 Net Cash Flow $2,024 $6,072 $24,288

Section Three: Supporting Documents

MA License 1000 RI License 2000 September 1, 2011 Zeal Boutique Route 139 Marshfield, MA 02050 Attn: Jackie Doherty PAUL J. ARMSTRONG BUILDING AND CONTACTING 12 SEA STREET MARSHFIELD, MA 02050 PHONE: (781) 837 2827 Dear Ms. Doherty, For the sum of $20,000, we propose to furnish and renovate the store as shown on your outline sketch. All work will be guaranteed and serviced for one year from the date of completion. We would require a down payment of $5,000, and another payment of $5,000 when the rough construction is completed, with the balance due upon final completion. If the above meets with your approval, please sign and return one copy. Signed by: Date: Thank you, Paul J. Armstrong

Teen Vogue Magazine 2341 Newbury Street Boston, MA September 1, 2011 Dear Ms. Doherty, It is a pleasure to write a recommendation letter for Zeal Boutique. Having you work with us for the past five years has been a delight. Your work on the photo shoot styles are amazing. Ideas you put forth have made the magazine a better one. We are sad to see you go, however are ecstatic of your new business. We know that you have all the knowledge and skills to run this business and cannot wait to see your progress. Yours, Maria Porter Head Editor Teen Vogue Magazine